Moore Company purchased an item for inventory that cost $25 per unit and was pri

Question

Moore Company purchased an item for inventory that cost $25 per unit and was priced to sell at $44. It was determined that the replacement cost is $27 per unit. Using the lower of cost or market rule, what amount should be reported on the balance sheet for inventory?

$27.

$25.

$17.

$44.

the replacement cost is larger so the answer is?????????

Moore Company purchased an item for inventory that cost $25 per unit and was priced to sell at $44. It was determined that the replacement cost is $27 per unit. Using the lower of cost or market rule, what amount should be reported on the balance sheet for inventory?

Explanation / Answer

Using the lower of cost or market rule,inventory would be valued at $25 (lower of $25 or $27)

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